Capital Gains Manual

Exemptions: personal compensation or damages

TCGA92/S51 (2)

TCGA92/S51 (2) provides that sums obtained by way of compensation or damages for any wrong or injury suffered by an individual in his person or in his profession or vocation are not chargeable gains see CG13030+.

TCGA92/S62 (1)

Assets of which a deceased person was competent to dispose are not deemed to be disposed of on death even though they are acquired at market value by legatees, see CG30320+.

TCGA92/S76 & TCGA92/S85 (1)

No chargeable gain accrues on the disposal of an interest in a settlement where the disposal is by

any person for whose benefit the interest was created under the settlement, or

any other person unless the interest at any time was acquired for money or money’s worth whether by that person or any previous holder of the interest.

But these exemptions only apply if the trustees have always been resident or ordinarily resident in the UK. Further details are at CG38000.

For 2013/14 and subsequent years ordinary residence does not need to be considered.